FY2027 is expected to deliver revenue growth, but operating profit growth will be limited, making it necessary to assess profitability in Q1.

FY2026 revenue was ¥1,386.732 million, operating profit was ¥124.769 million, ordinary profit was ¥124.855 million, and net income was ¥102.239 million. Year on year, revenue increased 0.7%, operating profit increased 13.6%, and ordinary profit and net income each increased 11.3%, securing profit growth above the rate of revenue growth. The operating margin was 9.0% based on the earnings presentation materials, up 1.0 percentage point from 8.0% in the previous year.

The FY2027 forecast calls for revenue of ¥1,447 million, operating profit of ¥127 million, ordinary profit of ¥144 million, and net income of ¥105 million. Revenue is planned to increase 4.3% year on year, operating profit 1.8%, ordinary profit 15.3%, and net income 2.7%. Although revenue growth is expected to accelerate, operating profit growth will slow significantly from 13.6% in FY2026. On a simple calculation, the operating margin will decline from approximately 9.0% in FY2026 to approximately 8.8% in the FY2027 forecast, making it important to determine whether the revenue increase reflects growth while maintaining margins or growth led by higher costs.

The earnings presentation materials do not disclose progress against the FY2027 forecast or the revenue and profit amounts required for the remainder of the fiscal year. They also explain the full year for FY2026 and do not provide standalone three-month quarterly results. Accordingly, in FY2027-Q1 it will be necessary to confirm not only the absolute amounts of revenue and operating profit, but also the progress rates against the full-year forecasts of ¥1,447 million and ¥127 million in a form that allows them to be calculated. With simple equal allocation across the four quarters, the benchmarks would be revenue of ¥361.75 million and operating profit of ¥31.75 million, but seasonality arising from project progress criteria and the timing of SaaS revenue recognition means these figures should not be used for a mechanical pass-or-fail assessment.

The ¥144 million ordinary profit forecast is ¥17 million above the operating profit forecast, and ordinary profit is expected to increase 15.3% versus operating profit growth of 1.8%. The company explained that non-operating income increased in FY2026 as it resumed investing surplus funds, so FY2027-Q1 should be assessed for the amount of non-operating income, the balance of invested assets, and the difference from operating profit. If ordinary profit is strong while operating profit growth remains weak, it will be necessary to determine whether the difference reflects temporary investment gains or recurring income.